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<br />. <br /> <br />. <br /> <br />. <br /> <br />303 <br /> <br />""" <br /> <br />Agenda Item 25e - CR Inadvertent Overruns <br />March 26-27, 2001 Board Meeting <br />Page 2 of3 <br /> <br />returns or vice-versa. Furthermore, if a senior user uses more, there is less available to <br />junior users within a state's entitlement. <br /> <br />Discussion <br /> <br />In the "Key Terms for Quantification Settlement Among the State of California, IID, <br />CVWD and MWD" dated October 15, 1999, it states the quantification period shall <br />commence only if certain "conditions precedent" therein have been satisfied on or before <br />. March 31, 2001. Among the "conditions precedent" is one dealing with the Decree <br />Accounting that reads as follows: <br /> <br />"BOR has adopted and implemented standards and procedures for an inadvertent <br />overrun program that is in all respects in conformance with the attached Exhibit B, or is <br />otherwise acceptable to IlD, CVWD and MWD, and that would result in no material <br />reduction in the water available to each District under the Quantification Settlement <br />water budget. Within two weeks of the date these Key Terms are approved by the <br />Districts, MWD will provide lID and CVWD with its assessment of the likely impact of an <br />inadvertent overrun program that is in all aspects in conformance with Exhibit B, " <br /> <br />On January 18, 2001, the U.S. Bureau ofRecIamation gave notice in the Federal Register <br />of a proposed policy that would identify inadvertent overruns, establish procedures to <br />account for inadvertent overruns and define subsequent payback requirements as outlined <br />in Exhibit B. Comments were to be provided by March 24, 2001, but that deadline has <br />been extended to April 10. April 10 is also the deadline for submitting comments on the <br />scope of the EIS for the Implementation Agreement that will put in-place the contractual <br />elements allowing California's Colorado River Water Use Plan (4.4 Plan) to move <br />forward (See March 9,2001, Federal Register Notice). . <br /> <br />The proposed policy actually contains stricter repayment provisions than Appendix B by <br />mutual agreement ofthe parties, the repayment provisions are as follows: <br />Mead spilling or making Flood Control releases Overruns forgiven <br />Mead above elevation 1125 3-year payback <br />Mead at or below 1125, no shortage I-year payback <br />Declared Shortage to Lower Basin No overrun pennitted <br /> <br />A water user's inadvertent overrun account cap would be 10% of their "nonnal year" <br />consumptive use entitlement (baseline). However, there remains some confusion over <br />whether or not the cap changes as the terms of "Settlement" are implemented. The <br />minimum payback amount would be the greater of 20% of the maximum account balance <br />or one-third of the account balance. No exceeding the maximum account balance will be <br />allowed during any payback year and should such occur, it must be paid back in full the <br />following year along with any other scheduled payback. Paybacks must result from <br />extraordinary conservation measures, such as land fallowing, that are above and beyond <br />nonnal operating practices. The intent here is desirable, but this element needs some <br />